Chinese Developers File Antitrust Complaint Against Apple

*Forty-eight China-based iOS developers have asked the State Administration for Market Regulation to investigate Apple's App Store commission structure and distribution rules.*

A group of 48 developers sent an open letter to China's State Administration for Market Regulation alleging that Apple has imposed unfair and excessively high costs through its App Store. They claim Apple failed to follow through on an earlier promise to give the Chinese market its lowest commission rate.

The complaint centers on the standard 30 percent commission and the restrictions that prevent developers from using alternative distribution methods. The developers argue these practices amount to an abuse of market dominance.

Recent commission changes

In March, Apple reduced the commission on subscription renewals and for developers in its Small Business and Mini Apps Partner programs from 15 percent to 12 percent. The letter states that even after this adjustment, the rates remain too high for many local developers.

The group is asking the regulator to open an investigation and impose penalties.

Why it matters

Apple already faces separate regulatory scrutiny in China and the European Union over the same App Store terms. Another formal complaint from a sizable group of domestic developers adds pressure at a time when the company is trying to protect revenue from its services business. If SAMR opens a case, Apple will have to defend its pricing and distribution policies in its second-largest market rather than simply adjust rates on its own schedule.

The outcome will show whether Chinese authorities treat the App Store's commission model as a competition issue or accept it as standard platform economics.

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Sources:

• 9to5Mac
• MacRumors

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